How Much Will The Stamp Duty Changes Cost Me?

Updated: 23 September 2022

See how the latest changes to Stamp Duty will affect you…

Stamp Duty Changes

The Stamp Duty Land Tax (SDLT) nil-rate band on properties has now gone back up to £250,000 again. (From 1 October 2021, the nil-rate band had been £125,000.)

Here are the current Stamp Duty rates following the latest changes announced in the Mini-Budget on 23 September 2022:

• property value up to £250,000 – 0%
• next £675,000 (the portion from £250,001 to £925,000) – 5%
• next £575,000 (the portion from £925,001 to £1.5 million) – 10%
• remaining amount (the portion above £1.5 million) – 12%.

First Time Buyers

First time buyers will pay:

• no Stamp Duty on properties up to £425,000 in value
• 5% Stamp Duty on the portion from £425,001 to £625,000.

If the price is over £625,000 you cannot claim the relief.

Homes Valued At More Than £250,000

If you bought a £300,000 property for example, you'd pay £2,500 Stamp Duty (5% of the £50,000 above the threshold). Before the latest changes were announced, you would have had to pay £5,000.

Important Note: The latest Stamp Duty rates apply to properties purchased on or after 23 September 2022. There are different rates for properties bought before then.

And with regard to second homes and buy-to-let properties, the distinction is between the number of homes held at the point of completion – regardless of what that home is then used for.

If you want to save money, you should start looking to buy as soon as possible.

Second Homes, Buy-To-Let Homes

You must pay the higher Stamp Duty rates when you buy a residential property (or a part of one) for £40,000 or more, if all the following apply:

• it will not be the only residential property worth £40,000 or more that you own (or part own) anywhere in the world
• you have not sold or given away your previous main home
• no one else has a lease on it which has more than 21 years left to run.

Landlords will benefit from the more generous Stamp Duty thresholds but the existing 3% surcharge remains in place.

Get Expert Legal Help Buying A Home

Buying a home is usually the biggest and most important purchase you will ever make.

Get expert legal help from Coles Miller conveyancing solicitor Ruth Elkins, a Partner at our Broadstone office.